Background Objectives Scope of Research

I. INTRODUCTION

1.1. Background

The uncertainty of wood material supply has become a major problem for Indonesia’s forestry industry. The large imbalance between the diminished sustainable capacity of the forest and forestry industry for raw material need has known as the reason behind the problem. Factually, this condition has been reported by Department of Forestry based on study in 1998 where the capacity supplies of natural forest was only 19 million m 3 , conversely, industry raw material demand was exceed 60 million m 3 . To overcome industry material problem, Government Department of Forestry has established regulation number 342002 about forestry industry revitalization. From this regulation, Government attempted to revitalize and create industry which efficient in material used, to improve wood product value, and to control industry product capacity. To achieve those goals, the first revitalization action was taken by monitoring and evaluating industry performance based on criteria and indicators regulated on P.172004. Within the revitalization actions, there were some problems that have been identified. The current industry monitoring and evaluation system, unfortunately, is time consuming and costly and sometimes emerge discrepancy among decision maker within sub-directorate in Ministry of Forestry. The purpose of this research is to develop a system that can improve the current system and used by Government in the context of monitoring and evaluating forestry industry. This research is expected to contribute Government in supporting decision making.

1.2. Objectives

The main objective of this research is to develop a Decision Support System DSS tool for monitoring and evaluating forestry industry.

1.3. Scope of Research

Specifically, the research is focused on the development of forestry industry database system, GIS based information system and a decision support system tool that can be used by Department of Forestry for monitoring and evaluating forestry industry. The system implementation takes place on Directorate General of Forest Production Management, in which the potential users of the system are : 1 Forest Product Manufacture Sub Directorate; 2 Production Sub Directorate; 3 Marketing and Forestry Industry Performance Assessment Sub Directorate, Department of Forestry. To support of this research, data were collected from Forest Production Management Directorate General, covering forestry industry data in 33 provinces in Indonesia. II. LITERATURE REVIEW

2.1. Indonesia’s Forestry Industry Development